Piling Up Losses in a "Self-Directed" 401k Account
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General Items Piling Up Losses in a "Self-Directed" 401k Account Abstract: One recent Securities and Exchange Commission filing offers an unusually granular glimpse into how much risk some employees take with their retirement money by having an overconcentration of company stock in their 401k plan. Source: Wsj.com A Roth 401k Could Make a Difference in Retirement Abstract: The conventional wisdom is that older workers in their prime earning years should focus on using the traditional 401k given the ability to reduce their current taxable income. New academic research "turns conventional wisdom on its head." Source: Consumerreports.org You Know About the 401k, but What About the Roth 401k? Abstract: Over half of employers offer the Roth option within their 401k plans, yet less than 10% of employees are taking advantage of the option. Article outlines the benefits and downside of the Roth 401k. Source: Nasdaq.com
403(b) Plans Abstract: For 403(b) plans that haven't yet embarked on fund and provider consolidation, there remain opportunities to build participant-friendly and cost-effective plan designs, a paper from Rocaton Investment Advisors suggests. Source: Planadviser.com The Unusual Matter of 403(b) Ethics Abstract: Author writes, "I was struck by the conundrum the 'mismatching' of the 403(b) rules can cause the pension professional, as well as the lawyer, registered rep and CPA, under their ethical rules." Source: Businessofbenefits.com »» Click here for More 403(b) Material
Insight: Studies, Research and White Papers Plan Participants Still Not Confident in Their Approach to Investing Abstract: J.P. Morgan study reveals that many participants are still not confident in their approach to saving and investing, there appears to be a human disconnect between participant intent and action, and a potential misperception about participant support for automatic features and strategies may be holding plan sponsors back from strengthening their DC plans. Source: 401khelpcenter.com Targeting Responses by Demographic Groups Pay Off, Polls Show Abstract: Results from a new OneAmerica survey show that age-specific strategies, rather than a one-size-fits-all approach, may be the most effective method for plan sponsors to address retirement readiness, illustrating the difference between Millennials in the workforce and those closer to the end of their career. Source: 401khelpcenter.com The Correlation Between Retirement Readiness and Employer Involvement Abstract: A new study by Ramsey Solutions finds that employees with access to financial and retirement education have less stress, more savings and more confidence than those without access. Results show 40 percent of workers say their employers do not provide any type of retirement or financial education and seven out of 10 workers with zero retirement savings do not have access to retirement education from their employers. Source: Daveramsey.com
»» Click here for More Studies, Research and White Papers
Items of Special Interest to Service Providers Abstract: Adding a little structure and organization to the thought process can provide your clients with clarity and direction as they approach retirement. This is a self-assessment tool to open communication and retirement planning. Source: Advisorinsightsblog.com Best Practices When Working With Your 401k Plan Clients Abstract: The advisor will become the plan sponsor's go-to resource for all things plan-related if he or she believes the advisor understands the company's plan and has the knowledge to troubleshoot plan problems. Consider these best practices to ensure that you remain the go-to resource. Source: Sourcemedia.com Top 401k Advisors Tap Underserved Nonprofit 403(b) Space Abstract: Broadening a practice's growth to include different business niches isn't a new strategy. By some measures, however, a relatively underutilized sector that remains well below many advisors' radar is nonprofit 403(b) plans. Source: Financialadvisoriq.com
DOL's Fiduciary Rule Retirement Plan Providers Optimistic About Impact of DOL Fiduciary Rule Abstract: A new LIMRA Secure Retirement Institute study shows that 64 percent of the top retirement plan recordkeepers and providers believe the DOL fiduciary rule will have a positive or neutral effect on their overall asset retention rate over the next two years. Source: 401khelpcenter.com »» Click here for More on the DOL's Fiduciary Rule
Compliance and Regulatory Regulators Targeting 12b-1 Fees, Is Revenue Sharing Far Behind? Abstract: Plan sponsors have a fiduciary duty to make sure the fees on their 401k plans are reasonable, including any 12b-1 fees. We are also seeing more intense scrutiny of 12b-1 fees by the SEC. Paper reviews a number of topics related to this issue including the fiduciary liability risks assumed by plan sponsors who use funds with 12b-1 fees. Source: Fiduciarynews.com Terminated Participants: Out of Sight, Out of Mind -- That is the Problem Abstract: The DOL has recently launched an initiative to audit retirement plans to confirm whether or not they have terminated, vested participants that might be owed plan benefits. If such owed distributions "slip through the cracks," it has the potential to run afoul of both DOL and IRS rules, exposing the plan to potential penalties and loss of tax qualification status. Source: Cammackretirement.com Plan Amendments Are Required When You Terminate Your Plan Abstract: One of the steps to take before terminating your retirement plan is to make sure your plan document includes all law changes your plan was required to follow as of the plan's termination date. Source: Irs.gov Complete Discontinuance of Contributions to Profit Sharing/401k Plan Abstract: While plan sponsors aren't required to make contributions to their profit sharing/401k plan every year, contributions must be "recurring and substantial" for a plan to be considered ongoing. When a complete discontinuance of contributions occurs, the plan sponsor must treat the plan as a terminated plan and fully vest all participant accounts for the plan to remain qualified. Source: Irs.gov
»» Click here for More Compliance and Regulatory Material
Marketplace News Betterment for Business Surpasses 200 Plan Sponsors DOL Announces Grants to Develop Portable Retirement Savings Plans for Low-Wage Workers
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